Fueling Growth in Saudi Education through Mergers and Acquisitions
ture of Saudi Arabia’s education sector, offering potential returns in the high double-digits, according to industry experts.
Recent M&A activity in the education sector includes Maarif acquiring Ibn Khaldoun, adding 13,000 students across four schools to reach a student total of over 36,000. GFH Financial Group of Bahrain also agreed to buy Britus Education, a company with a market value of over $200 million and schools across Saudi Arabia, the UAE, and Bahrain. PwC Middle East acquired Emkan Education, a Saudi consultancy specializing in education.
Chandra Tiwari, founder and CFO of AlephYa Education, emphasizes the importance of M&A in consolidating the education market and improving education quality, capacity, and school strength. AlephYa Education, with schools across the GCC, is planning for further expansion.
With Saudi Arabia having the highest school-age population in the GCC, reaching 9.1 million children in 2023 and projected to grow to 9.5 million by 2030, the demand for education is high. Colliers Middle East predicts a need for 1,200 new private schools by 2030.
Despite private day schools only accounting for 15% of total student enrollment in the country, the sector is expected to become the largest and most competitive in the region, driven by rising household incomes and a shift towards diversification from hydrocarbons. Shaon Robison, CEO of BBD Education, a leading management company for international schools, highlights this growth trend.
Education is a central pillar of Vision 2030 in Saudi Arabia, driving investment and market expansion. The Ministry of Investment reported an 86% increase in investment licenses in the education sector, with expectations of further growth through public-private partnerships.
Amanat Holdings, a Dubai investment company, is gearing up for an IPO for its education business in Saudi Arabia in 2025. The IPO aims to raise $300 million and will be managed by SNB Capital. The Saudi education market is poised for significant growth and presents attractive opportunities for investors and companies alike.